ISO 55001 -A PRAGMATIC PROPOSAL FOR DIAGNOSIS AND IMPLEMENTATION

Abstract

Having been published in 2014, ISO 55001 began as standard with PAS 55 in 2004; although, the need arose much earlier with several asset managements related documents. They arose within organizations or services to be part of procedures in isolated organizations with multidisciplinary or cross-organizational problems. ISO 55001 is based on four pillars: Value; Alignment; Leadership; and Assurance. Physical Assets exist to provide value to the organization and its shareholders, understanding value and how the assets contribute to value is therefore important. Asset management translates organizational objectives into technical and financial decisions, plans and activities. Asset management requires a vision of organizational objectives down to tactical plans and measures. Leadership and workplace culture are key to realizing value. Asset management requires effective management to take leading and commitment. Asset management ensures that assets will meet the required objectives, and this requires the organization to evaluate progress and performance with discipline and objectivity and, typically, includes the definition of performance measures and periodic reviews and audits. To make the right decisions it is needed good information, and the way the organization manages its data demonstrates its commitment to the entire system; additionally, everyone must be aware of the improvements that need to be made and easily know what information require to support the decisions. The present paper, based on the state of the art, after had identified some questions yet not answered, proposed some contributions to respond them. The present paper presents a global approach how to diagnose an organization to implement ISO 55001 and the methodology to implement it and the roadmap to its implementation. Additionally, it discusses its sequence of implementation and the level of fulfilment for each requirement in a new quantitative way.

Full text

Proceedings IRF2020: 7th International Conference Integrity-Reliability-Failure.
J.F. Silva Gomes and S.A. Meguid (editors), INEGI-FEUP (2020), pp.739-742.
https://paginas.fe.up.pt/~irf/Proceedings_IRF2020/
-739-
PAPER REF: 17210
ISO 55001 - A PRAGMATIC PROPOSAL FOR DIAGNOSIS AND
IMPLEMENTATION
E. Pais
1,2(*)
, J.T. Farinha
3,4
, H. Raposo
3,4
1CISE - Electromechatronic Systems Research Centre, University Beira Interior, Covilhã, Portugal
2Ind. Eng. and Management, Universidade Lusófona de Humanidades e Tecnologia, Lisbon, Portugal
3ISEC, Coimbra, Portugal
4CEMMPRE, Coimbra, Portugal
(*)Email: edmundopais@gmail.com
ABSTRACT
Having been published in 2014, ISO 55001 began as standard with PAS 55 in 2004; although,
the need arose much earlier with several asset managements related documents. They arose
within organizations or services to be part of procedures in isolated organizations with
multidisciplinary or cross-organizational problems.
ISO 55001 is based on four pillars: Value; Alignment; Leadership; and Assurance.
Physical Assets exist to provide value to the organization and its shareholders, understanding
value and how the assets contribute to value is therefore important. Asset management
translates organizational objectives into technical and financial decisions, plans and activities.
Asset management requires a vision of organizational objectives down to tactical plans and
measures. Leadership and workplace culture are key to realizing value. Asset management
requires effective management to take leading and commitment. Asset management ensures
that assets will meet the required objectives, and this requires the organization to evaluate
progress and performance with discipline and objectivity and, typically, includes the definition
of performance measures and periodic reviews and audits.
To make the right decisions it is needed good information, and the way the organization
manages its data demonstrates its commitment to the entire system; additionally, everyone must
be aware of the improvements that need to be made and easily know what information require
to support the decisions.
The present paper, based on the state of the art, after had identified some questions yet not
answered, proposed some contributions to respond them.
The present paper presents a global approach how to diagnose an organization to implement
ISO 55001 and the methodology to implement it and the roadmap to its implementation.
Additionally, it discusses its sequence of implementation and the level of fulfilment for each
requirement in a new quantitative way.
Keywords:
ISO5500x, Asset Management, PAS 55, Organization Diagnosis.
INTRODUCTION
What is asset management? What are these assets? ISO 55000 defines asset management as
"the coordinated activity of an organization to realize asset value".

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Asset management involves balancing costs, opportunities and risks with the desired
performance of assets to achieve organizational goals. It also allows the application of analytical
approaches to manage the assets at different stages of its life cycle. Asset management is the
art and the science of making the right decisions, optimizing the value delivered.
A common objective is to minimize the cost of living of assets; but there may be other critical
factors such as risk or business continuity, objectively considered in this decision making [1].
There is a need to determinate, establish, ensure, and review the procedures and requirements
in order to fulfil the ISO 55001 complies (Figure 1).
Fig. 1 - Logical Sequence
(https://www.assetivity.com.au/article/asset-management/roadmap-to-iso-55001-
compliance-implementing-iso-55000.html)
The ISO 55001 certification is based on the following documents:
•
An Asset Management Policy;
•
Strategic Asset Management Plan (SAMP) and,
•
Asset Management Plans (AMPs).
From the South African perspective, the basic asset lifecycle management model is described
in the National Treasury guideline. An asset's life cycle can be defined as the period that an
entity can predict by using an asset in an economically effective and efficient manner to
promote the entity's provision of services or trade. The National Treasury guideline further
states that the period covers all stages of an asset's life: acquisition; use and maintenance; and
eventual alienation. This period is described as the useful life of the asset for the entity and may
differ from the physical life of the asset [2].
Schuman & Brent stated that a comprehensive Life Cycle Management (LCM) approach
assures that the processes used across projects are consistent and that there is effective sharing
and coordination of resources, information and technologies. All life cycles within a system

Proceedings IRF2020
7th International Conference Integrity-Reliability-Failure
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must be considered, which spans the conception of ideas through the retirement of the entire
system. Within the process industry environment, LCM defines the processes for acquiring and
supplying system products and services that are configured from the system components of
hardware and humans. In addition, LCM provides for the assessment and improvement of the
life cycles [3].
RESULTS AND CONCLUSIONS
The diagnostic model developed until today by the authors to support the implementation of
the ISO 55001 standard is easy to use and provides concrete results to support organizations by
identifying their strengths and weaknesses for their implementation, and also provides help to
improve through a PDCA (Plan. Do, Check, and Act) cycle (Figure 2) [1].
Fig. 2 - Radar Map
About the methodology to implement the ISO 55001, the sequence of implementation and
quantitative approach about the fulfilment for each requirement are under development being
the next results presented in the final paper.
After all, it ought to be emphasised that continuous improvement is a slogan of ISO
55001:2014: “The organization must continually improve the fitness, suitability and
effectiveness of its asset management, and the asset management system”.
REFERENCES
[1] Pais E, Raposo H, Meireles A, Farinha JT, (2019), ISO 55001 - A Strategic Tool for the
Circular Economy - Diagnosis of the Organization’s State. Journal of Industrial Engineering
and Management Science, Vol. 1, pp.89-108. DOI: 10.13052/jiems2446-1822.2018.005.

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[2] Haffejee M, Brent AC (2008), Evaluation of an integrated asset life-cycle management
(ALCM) model and assessment of practices in the water utility sector, Water SA Vol. 34 No.
2. DOI: 10.4314/wsa.v34i2.183651.
[3] Schuman C, Brent A (2005), Asset life cycle management: towards improving physical
asset performance in the process industry, International Journal of Operations & Production
Management, Vol. 25 No. 6, pp.566-579. https://doi.org/10.1108/014435705105 99728.
E. Pais; J.T. Farinha; H. Raposo (2020). "ISO 55001 - A PRAGMATIC PROPOSAL
FOR DIAGNOSIS AND IMPLEMENTATION". Proceedings IRF2020: 7th
International Conference Integrity-Reliability-Failure. J.F. Silva Gomes and S.A.
Meguid (editors), INEGI-FEUP (2020), Paper Ref: 17210: 739-742. ISBN:
978-989-54756-1-2 - https://paginas.fe.up.pt/~irf/Proceedings_IRF2020/